Arweave (AR) – Have more bearish fuel in the tankPosted on Wednesday, January 26 2022 at 8:57 pm GMT+0000
Decentralized storage network Arweave (AR) was forced to move backward after bouncing last Sunday, thanks to resistance from the recently broken December low at 35.12. The recent bearish intersection between the exponential moving averages empowered the negative picture, suggesting the decline will remain sturdy for a bit longer.
Glancing at the momentum oscillators, they are favoring additional declines at the moment. The On Balance Volume (OBV) is holding well below the descending trendline that can be drawn from the beginning of 2022, and the ADX indicator is maintaining its bearish attitude with the -DI lying well above +DI and the ADX itself continuing to improve past the 20 level.
So as things stand, Arweave will likely soon visit the 22.50 – 24.50 zone encapsulating the August 26th low. Should this barrier fail to negate bearish pressures from snowballing, the price could then sink towards the 161.8% Fibonacci extension level of the December – January upward swing at 14.00.
If buying interest picks uplifting the price beyond the 35.12 low, early resistance may transpire from the January 9th inside swing low at 43.70. A bit higher, the simple exponential moving averages will attempt to curb the recovery around 50.00.
In brief, Arweave seems to have more bearish fuel in the tank, and a drop towards at least 24.50 will remain the most likely scenario unless the price oversteps the 35.12 resistance.